EUR/USD Levels To Watch, LIBORs, Europe Debt Crisis Updates (6/16/2011)

EUR/USD could test the 200dma and 1.5 year uptrend line. The October 2010 peak looks like resistance again. The Eurozone sovereign debt crisis still hasn't been resolved, and since banks own this debt there are worries over contagion risk. Greece's 5Y credit default swap just hit a new high (1,769.175 bps USD). This could help, via Reuters: "IMF expected to pay next Greek tranche: eurozone sources". Below is some DV proprietary chart art and links to relevant articles. Watch LIBORs and the U.S. 2-year swap spread to see if interbank dollar funding risks are being repriced. Read more at Bloomberg"Europe Faces ‘Lehman Moment’ as Greece Unravels: Euro Credit".

Source:  (click for larger view)

1-Month, 3-Month LIBOR (London Interbank Offered Rate)
Direct Source:

Related articles:

Hedge Funds Ramp Up Extreme Bets Against Euro
"According to a Deutsche Bank note to a client, one "U.S. house" bought a very large amount of one-month euro/dollar put options with a $1.40 strike price on Tuesday and Wednesday. At Bank of America, brokers saw someone buy a $1 billion put option with a strike price of $1.30 and an end-of-year maturity date." (WSJ)

Euro Declines to Three-Week Low on Concern Europe Debt Crisis Is Worsening (Bloomberg)

Euro-Dollar Puts Reach Highest in Year on Greece’s Sovereign-Debt Turmoil (Bloomberg)

Greek Bank Threat is Main Stability Risk: ECB (Bloomberg)

European stocks falter on debt contagion woes (Reuters)

Greece, Ireland, Portugal Lead Sovereign Credit-Default Swaps to Records (Bloomberg)

Greek Government Fall Would Be Big Step To Disorderly Default -Fitch Analyst (WSJ)

Treasuries Advance on Europe Concerns, Two-Year Yields Fall to 2011 Low (Bloomberg)

Japan’s Bonds Rise as Greece Political Turmoil Boosts Demand for Safety (Bloomberg)

Rise in dollar funding pressures spooks traders (Reuters)

ECB Constancio: Restructuring Could Increase Contagion Risk (iMarketNews)

Interest Rate Swap Spreads Widen Most Since November; Moody's Warns French Banks (Bloomberg)

Guggenheim's Minerd Interview on Global Markets, Greece's Debt Problems (Bloomberg Video)

FX Concepts's Conklin on Euro, Dollar Outlook (Bloomberg Video)

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